A TOD account skips the estate process and premiums a will. If you have all your money and property on your children, but you have a TOD account that qualifies your brother as a beneficiary, he receives what is in the account and your children receive everything else. Succession planning can help minimize the legal chaos that will be left after death. Without them, the estate system can take over the distribution of your assets. It can also appoint an executor of your estate and settle your remaining debts with your assets. He distributes everything that`s left according to your will, but only if you have one. If you do not, your assets will be distributed evenly by the estate court to all living parents that the executor can find. and Transfer-on-Death (TOD) Accounts and deeds are a popular real estate planning tool that can help you avoid discounting for certain assets and real estate. While many people choose to use death names to avoid estates, they are not a substitute for a true succession plan. But why are they popular and what do they do? Are they okay for everyone? Let`s take a closer look.

A death transfer agreement, account, deed or other denomination is an account or property that indicates a beneficiary to whom the account or property must be transferred if the owner dies. It is also known as a Totten Trust or a poor man will, but it is neither a will nor a trust. If there is a designated beneficiary, the property or assets are transferred directly to the beneficiary, without going through an estate (the legal process of sorting and distributing assets, assets, liabilities, etc. after death). When creating these accounts, the owner could submit a receipt form specifying to whom assets should be transferred after death and in what percentage. The form for recipients can be updated at any time by the account holder. Not exactly. There are some problems that could affect TOD accounts in different states. Most states have passed laws that allow you to create TOD accounts for stocks, bonds and broker accounts. However, in community real estate countries, you must have a signed share of your spouse if you do not own the account or beneficiary in the TOD account. Your spouse may be entitled to half the value of the securities you own, even if they are in your name.

Community property states include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin (and Alaska, if you sign a community real estate agreement). In addition, only certain states allow for an act of death for a property. States where it is licensed: Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Hawaii, Illinois, Indiana, Kansas, Minnesota, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas, Virginia, Washington, West Virginia, Wisconsin and Wyoming. The transfer to the death name allows beneficiaries to obtain assets at the time of the person`s death without suffering an inheritance. With this designation, the account holder or the holder of the guarantee can also indicate the percentage of assets received by each designated beneficiary, which helps the executor to distribute the person`s wealth after death. With the TOD registration, the aforementioned beneficiaries do not have access or control a person`s property while the person is alive. While a TOD account can be distributed among multiple beneficiaries, this does not mean that it should be evenly distributed. You can consult with beneficiaries and consultants to avoid potential conflicts. In addition, a TOD account with a person under the age of 18 as a beneficiary could be problematic, as minors cannot control investment accounts. If you have not appointed a guardian or established a position of trust (and have appointed an agent), this may be a discussion worth considering.